We are passing through rather interesting times in the Indian economy and markets. The rise in the indices have had investors thinking as to whether it will be a good idea to keep buying as of now. By all conceivable logic, there is a correction round the corner. Is it likely to be momentary or very deep? We can only speculate in an intelligent manner.
In my opinion, it does not really matter much if there is a correction soon. Nifty will probably find support at 10800 plus levels and that is something none of us expected a couple of months back. In the scenario I see unfolding, we are very much in a structural bull run and corrections are going to be price based rather than time based. To that extent you need not really change your investment plans a great deal.
What about people who are starting off building a MF portfolio or ones who want to realign their portfolio to better funds, taking advantage of the current highs? Which funds should we bet on for the next 15 years or more? I gathered some inputs from experts managing HNI money and this is what they had to say:-
- A good fund manager has generated 4-5 % alpha over the indices in the past 2 decades. For this reason avoid Index ETF in our markets right now.
- There may well be a structural bull run in our markets over the next 10-15 years.
- Multi cap funds will be the best suited for this time frame but look at other categories like large cap and mid/small caps too.
So which are the funds to bet on? Here are a few for you to consider:-
- ICICI Focused Blue chip
- Kotak Select Focus
- Reliance Vision
- SBI Pharma
- Kotak 50
- Franklin High growth
- MOST 25
- MOST 35
- ICICI Value Discovery
You will not find many of your known funds here, but then these are futuristic in their likely performance. Go with them if you are willing to take some risks for potential higher returns.
However, if your existing funds are doing well, do not change for the sake of change.